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Fair palm oil exists

While the palm oil industry is still investigating how to stop the destruction of human and environmental resources in South East Asia, fair alternatives already exist, such as palm oil projects in Ghana, Togo and Ecuador which have been certified and have obtained the Fair for Life label.

Fair palm oil exists

1.
How sustainable is ‘sustainable’ palm oil? We raised this
question in earlier articles about the Round Table for
Sustainable Palm Oil and the Belgian Alliance for
Sustainable Palm Oil. While the industry is still
investigating how to stop the destruction of human and
environmental resources in South-East Asia, there are fair
alternatives already, like palm oil projects in Ghana, Togo
and Ecuador which have been certified and have obtained
the Fair for Life fair trade label.
Unique but controversial 3
In search of sustainable palm oil 4
In search of fair palm oil 5
Fair for Life 6
Serendipalm in Ghana 7
Exportsustent in Ecuador 11
Alaffia in Togo 12
Conclusion 13
2
To wash the palm oil fruits is a task for women at Serendipalm

2.
If you look at the impressive expansion of palm oil
cultivation, you will find many pros – with its keen
defenders – as well as cons – with its staunch opponents.
The advantages of palm oil seem clear. Palm oil has
unique properties which is why it is very much coveted by
the food industry. Furthermore, productivity per hectare of
palm oil is many times higher compared to other vegetable
oils. It would take 7 to 10 times more land to obtain the
same quantity of vegetable oil without palm oil.
But opposition is growing. First, there is medical evidence
against the use of palm oil because of the great amount of
saturated fats it contains. The most critical opponents are
NGOs and environmental groups though. Because of the
huge expansion of the crop in Indonesia and Malaysia the
direct link with deforestation, the loss of biodiversity and
the emergence of social conflicts has become apparent.
Huge expanses of valuable rain forest are destroyed, land
is taken from local communities and labour rights are
violated on a large scale. A weeping orang-utan stands
symbol for the many victims of the unrestrained greed of
local and international businesses in the palm oil value
chain.
Many stakeholders in the industry are aware of the
problem. Eddy Esselink of the Dutch Task Force on
Sustainable Palm Oil summarises the defence of palm oil
as follows: “Alternatives for palm oil are not better for
health and even worse for the environment. That is why the
best alternative for palm oil is sustainable palm oil.”
3
Palm oil nursery

3.
In response to criticism the industry created the Round
Table for Sustainable Palm Oil (RSPO) in 2004. Producers,
processors and traders that stick to certain principles and
criteria can become RSPO certified and use a ‘sustainable’
label.
NGOs such as the WWF and Oxfam have joined the round
table and advocate stricter criteria. That way, in 2016,
RSPO Next was launched as a – currently voluntary – next
level excluding any ties with deforestation, forest fires or
the reclamation of peatland.
NGOs such as Greenpeace have always been very critical
about the RSPO. They consider the criteria and control to
be too weak, owing to which the certification provides no
guarantee against deforestation. Since RSPO Next is only
a voluntary option for a few ‘forerunners’, its effect will be
very slow, whereas time is running for Indonesia's rain
forest.
In the article On the path to sustainable palm oil? you can
read more about this issue. Nevertheless, the RSPO is
successful. In 2015, 20% of global palm oil production was
RSPO certified, a share that has increased annually. Also
in Belgium the issue is raising interest. For instance,
members of the Belgian Alliance for Sustainable Palm Oil
succeeded in sourcing 100% RSPO certified palm oil by
the end of 2015. For 2020 their objectives are even higher
with extra criteria such as full protection of valuable forests
and wetlands.
4

4.
“Like other fair trade organisations we have struggled with
the question what to do with palm oil”, says Hielke van
Doorslaer of Oxfam-Wereldwinkels' Policy & South
Advocacy service. "In the end we opted for a varied
approach. For some products such as breakfast cereals
the added value of palm oil seemed limited and we
switched to sunflower oil. For other products we found
better local alternatives. For instance, the Costa Rican
cooperative Coopeagropal locally supplies the palm oil
needed for our yuca chips. Coopeagropal is not certified
yet, but it is very forward-looking socially and ecologically.
Chocolate spread is a different story altogether. Palm oil
gives chocolate spread its typical creaminess. Excluding
palm oil would lead to quality issues, but it would also
mean a shift of ecological and social issues. That is why
we decided to look for fair palm oil. The RSPO label offers
too few guarantees, but we were fortunate to find a
credible alternative with Serendipalm in Ghana, a Fair for
Life certified business.”
5

5.
The most famous fair trade label on the Belgian market is
undoubtedly the Fairtrade label (formerly the Max Havelaar
label). But neither Fairtrade International, nor other labels
like Ecocert Fair Trade have developed standards for palm
oil. So, it is not a coincidence that Oxfam-Wereldwinkels
eventually relied on Fair for Life.
Fair For Life is a certification programme that was
launched in 2006 by two Swiss organisations: the Institute
for Marketecology (IMO) and the NGO Bio-Foundation.
IMO has been an important player in certification for more
than 25 years. They carry out audits on some 70 different
social and ecological standards in such domains as
organic agriculture, forestry, pisciculture and fair trade.
With Fair for Life both organisations primarily aimed to go
further than Fairtrade International (then still called FLO) in
several respects. For instance, they were the first to drop
the geographical criterion, so also European producers'
organisations could be certified. Next, they do not start
from specific product standards but from a general
standard which targets three areas: ecology, corporate
social responsibility and fair trade. In addition to classical
cooperatives, also more informally organised producers'
groups can be certified.
Also plantations qualify for certification, if they can prove
they comply with labour regulations and have a positive
impact on the most marginalized workers. Businesses that
want to label their end product Fair for Life, must be able to
prove that they act correctly throughout the supply chain.
Unlike Fairtrade International there is no guaranteed
minimum price giving producers a secure income, instead
producers and customers have greater freedom to jointly
determine the 'fair price' and the value of the fair trade
premium. The high level of transparency about the specific
spending of the premium is important in this respect.
Because of its approach Fair for Life has become a
respected fair trade label. The International Guide to Fair
Trade Labels points out they are "quite demanding".
6

6.
In 2009, the Serendi palm project obtained Fair for Life
certification, the outcome of a particular story. At the basis
was Dr. Bronner’s Magic Soaps, an American family
business that has been in business for 150 years and
spans five generations. Corporate social responsibility was
part of their business statement long before the concept
was even coined. As it looked for better coconut oil, palm
oil and olive oil for its quality soaps, the business targeted
organic certified products in the first place. But soon they
found that an ecological label does not always foster social
equity. So, in 2005, they decided to take sourcing in their
own hands. Meanwhile, the Serendi world project consists
of several local businesses: Serendipol (coconut oil, Sri
Lanka), SerendiKenya (coconut oil, Kenya) and
Serendipalm (palm oil, Ghana). All three of them are Fair
for Life certified. Meanwhile, beside Oxfam-Wereldwinkels
many European businesses have become regular
customers of Serendipalm, like for instance the fair trade
organisations Gepa and Traidcraft and companies like
Rapunzel and Weleda.
7
Serendipalm became the biggest employer in the region.

7.
In 2006, Dr. Bronner’s and the NGO Fearless Planet
started working near the city of Asuom in East-Ghana.
Palm oil trees are native to the region and local farmers
have used them to complement their meagre incomes from
cocoa, cassava, maize or citrus fruits. In a first phase, four
field workers were hired to accompany the farmers to
become organic farmers. Simultaneously, a mill was built
modelled on the hundreds of small, artisanal oil presses
used in the region, named cramers. To manage this
processing facility a company was created, Serendipalm.
Now, some 670 families supply fresh palm fruits to the mill,
which has become the biggest employer in the region with
its more than 200 staff members.
It is noteworthy that many of the tasks at Serendipalm are
carried out by women: From releasing the individual, small
fruits from the bunches – work done traditionally by women
– to managing the mill. More technology could make the
process more efficient, but at the expense of employment
... and that is a choice that Serendipalm does not want to
make. After oil is expelled from the palm fruits, the press
cake and leftovers of the fruit bunches are recuperated by
farmers, who use them as organic fertiliser.
8

9.
When I started delivering my palm fruits
to Serendipalm, I received a price above
local market price. It helps with saving
for my children to go to school and to
finish my house.
Felicia Frimpomaa, farmer (source Gepa)
Tant les petits producteurs que les ouvriers de l’unité de
traitement ont leur mot à dire sur la composition du Comité
The farmers as well as the workers of the processing
facility have a seat in the Fair trade committee that decides
about the premiums. The organic premium – 10% on top of
the purchase price – is directly disbursed to the individual
farmers. It is usually used to pay workers to prune trees or
weed the fields. The fair trade premium is to benefit the
whole community. For instance, in surrounding villages
water wells, water tanks and public toilets were built, a
pedestrian bridge was repaired, and schools received extra
equipment and computers. In addition, Serendipalm has
itself supported initiatives, planting new seedlings in the
dusty city of Asuom, distributing 5000 mosquito nets and
building a maternity for the local hospital.
10
”
“
Picture above: Serendi palm employees
Photo p 9: Serendi palm oil extraction machine

10.
A similar but more recent story is Natural Habitats, a Dutch
company that trades organic palm oil Its activities in the
north of Ecuador were Fair for Life certified in 2013. Also in
Sierra Leone and Ghana the process is ongoing.
Like Dr. Bronner’s, Natural Habitats has chosen for
vertically integrated supply, with a clear overview of the
whole chain from farmer to plate. That is why
Exportsustent, the Ecuadorian branch of Natural Habitats
is very active in the field. Small plantations are set up to
train farmers from the region in organic farming and the
management of existing biodiversity. According to the
business philosophy, farmers delivering to the company
belong to the ‘Familia Organica’, a community that is
dedicated to quality production, care for the environment
and the social development of the community. In
exchange, these farmers are assisted by agronomists and
the company takes care of shipping the crops.
Exportsustent always spends 1% of its revenue on social
programmes. Schools have received learning materials
and computers, two health stations have been built and
hundreds of children and youths have been trained by
experienced football coaches.
But Exportsustent looks further. In 2013, the company
established the Asociación Nacional de Cultivadores en
Palma Aceitera (ANCUPA) to help small palm oil
producers throughout Ecuador to become sustainable
palm oil farmers and obtain RSPO certification.
11
Exportsustent facilitates the transport of the harvest

11.
Alaffia is the successful business of Togolese Olowo-n’djo
Tchala. He married an American Peace Corps volunteer
and ended up in America, where he studied. With his wife
he decided to return to Togo to produce beauty products
and shampoos on the basis of natural products. Local
employment and development were always high on their
agenda. The first Fair for Life certification for the
cooperative of shea butter producers was obtained in
2009; the cooperative delivering coconut oil followed in
2012. Palm oil is of minor importance to Alaffia, but it was
included in the certification.
Alaffia attaches much importance to its promise of a fair
trade premium of 15% on top the sales price, but in
addition it invests in a series of development projects,
targeting women and students in particular. The main
domains are health care of pregnant women, the fight
against female genital mutilation, the construction of
schools, the distribution of bicycles to enhance school
attendance and the planting of trees.
12
Shea butter is made from the fruit from the shea tree.